SEOUL • Samsung Electronics said yesterday it had won a 7.9 trillion won (S$9 billion) order to provide wireless communication solutions to Verizon in the United States, a major win for the South Korean firm in the next-generation 5G network market.
Samsung's global prospects for its network business have improved following US sanctions on its bigger rival Huawei, analysts said.
Verizon chief executive Hans Vestberg had told CNBC in July last year that Verizon does not use any Huawei equipment.
The telecommunications company had already been a Samsung customer before the order.
Verizon is believed to be Nokia's biggest customer, JP Morgan research said in a July note.
Cape Investment and Securities analyst Park Sung Soon said: "Samsung winning the order from Verizon would help the company expand its telecom equipment business abroad, potentially giving leverage to negotiate with other countries."
The order is for network equipment, a Samsung spokesman said.
The company declined to comment on detailed terms of the contract, such as the portion of 5G-capable equipment included.
"With this latest long-term strategic contract, we will continue to push the boundaries of 5G innovation to enhance mobile experiences for Verizon's customers," Samsung said in a statement.
The South Korean company said in a regulatory filing the period of the contract, which Samsung's US unit signed with Verizon Sourcing, is from June 30, 2020 to Dec 31, 2025.
Samsung had a 3 per cent market share of the global total telecom equipment market last year, behind No. 1 Huawei with 28 per cent, Nokia's 16 per cent, Ericsson's 14 per cent, ZTE's 10 per cent and Cisco's 7 per cent, according to market research firm Dell'Oro Group.
The Trump administration last month unveiled plans to auction off spectrum previously dedicated to military purposes for commercial use starting in mid-2022, to ramp up fifth-generation network coverage in the US.
The next-generation 5G wireless network is expected eventually to connect and enable high-speed video transmissions and self-driving cars, among other uses.
Britain in July ordered Huawei equipment to be purged completely from its 5G network by the end of 2027, adding that it needs to bring in new suppliers such as Samsung Electronics and Japan's NEC.
REUTERS
